Swedish Betsson to Acquire Georgian Europe-Bet

Betsson, Swedish gaming operator, confirmed that it has struck the deal to acquire Georgian based and privately owned gambling company Europe-Bet.

Betsson is to acquire Europe-Bet for total purchase consideration of the $85m but under the agreement that Swedish gaming operator will pay initial amount of $50 million to purchase the Europe-Bet, with the remainder of $35 million to be paid after a year provided the gambling regulations in Georgia remain unchanged.

Thanks to this arrangement, Betsson will become the second largest Georgian betting operator with a market share of almost 30%.

Magnus Silferberg who announced that he will resign from his position as the CEO and president of Betsson in July, said that as the result of the deal his company will be able to strengthen its market position in Georgia.

Talking about acquisition, Magnus pointed out that Europe-Bet has established the strong brand and that together with Betsson, foundation for growth and success outside and within Georgia will certainly be created.

Europe-Bet, which has online and land based operations, generated the revenue of $50m last year. Of $50m revenue that company reported in 2014, $40.8m was generated from their online operations.

As it was announced, Betsson plan to renew credit facility that amounts to €35m and to use a new credit facility totaling €75.4m in order to finance the purchase of the Europe-Bet. It is expected that acquisition will be completed in July.

In the past few years Georgia’s growing gaming market has been going in the right direction as gambling is a significant contributor to state revenues.

Betsson first mentioned that the company has entered negotiations to purchase Europe-Bet in April when they explained that they want to expand into new markets. Europe-Bet offers a wide range of online products such as poker, blackjack, online casino, roulette, betting and backgammon.

Europe-Bet has recently announced its partnership with World Poker Tour and received rights to WPT brands in Georgia. The company stated that its partnership with WPT will certainly bring more players to the tables and raise more interest for poker in the country.

Betsson also offers a wide range of gaming products including poker, sports betting and bingo.

The more detailed description of the acquisition will be presented during the Betsson’s presentation of the second quarter on 17th July.